Adani Family Summoned by U.S. SEC Over Bribery Allegations
The U.S. Securities and Exchange Commission (SEC) has summoned Indian billionaire Gautam Adani aFC GGnd his nephew, Sagar Adani, to address allegations of bribery involving solar-power contracts in India. The summons follows reports claiming that the Adani family paid over Sh32 billion ($220 million) in bribes to secure lucrative renewable energy projects.
The allegations center on contracts awarded to Adani Group entities, one of India's larg
est conglomerates, which has diversified interests ranging from energy to infrastructure. Whistleblowers and investigative reports allege that the bribes were funneled through intermediaries to government officials, ensuring favorable treatment in contract allocations.
The SEC’s involvement stems from Adani Group's ties to U.S.-based investors and financial institutions. Given its significant international footprint, the alleged misconduct raises concerns under U.S. anti-corruption laws, including the Foreign Corrupt Practices Act (FCPA).
A spokesperson for the Adani Group dismissed the allegations as baseless, asserting that the company operates with "the highest standards of governance and integrity." However, critics argue that the group’s rapid rise in India's renewable energy sector warrants closer scrutiny.
The summons adds to mounting scrutiny on the Adani Group, which has faced recent accusations of stock manipulation and corporate governance lapses from short-seller Hindenburg Research. The ongoing controversies have cast a shadow over Gautam Adani’s reputation, once celebrated as a symbol of India’s economic ascent.
The SEC’s inquiry marks a significant escalation in international regulatory pressure, potentially complicating the Adani Group’s global operations and investor confidence. Further hearings and investigations are expected.
